Beef industry negotiates division of Mercosur’s EU export quota

Brazilian beef exporters are negotiating with industry groups in Argentina, Uruguay and Paraguay over how to divide the Mercosur beef quota for the EU, with a proposal that would give countries larger shares in the product categories where they are strongest.

Under the proposal, Argentina and Uruguay could receive a larger share of the quota for chilled beef, while Brazil and Paraguay would have more room for frozen beef, according to Roberto Perosa, president of the Brazilian Beef Exporters Association, known as Abiec.

“We have a proposal that takes into account production capacity and each country’s history of shipments to Europe,” Perosa told Valor. “Countries such as Uruguay and Argentina have greater capacity and a stronger track record in chilled beef. Brazil is open to discussing the possibility of them having a larger chilled quota and us having a larger frozen quota.”

“I believe this is a path toward reaching an agreement,” he added.

The proposal also includes percentage allocations for each country, although Perosa declined to provide further details.

“It is based on each country’s production capacity, its share of the global meat market and its position in the European market,” he said.

Industry groups seek common position

Abiec has already held talks with beef industry associations in Uruguay, Argentina and Paraguay.

Last week, an Abiec representative traveled to Uruguay for meetings with the country’s National Meat Institute, known as Inac. This week, Perosa is in Argentina for talks with the Argentine beef industry association ABC.

According to Abiec, once the four national associations reach a consensus, the proposal will be submitted for approval by the Mercosur Meat Forum, or FMC, which brings together representatives of the beef supply chains in all four countries.

The agreed position would then be taken up by their respective governments.

EU quota to reach 99,000 tons by 2031

The European Union-Mercosur trade agreement established a total beef quota of 99,000 metric tons, divided between 55% chilled beef and 45% frozen beef, to be shared among Mercosur’s exporting countries.

The full volume will only be reached in the sixth year of the agreement.

For 2026, considered “year zero” of implementation, the annual quota would have been 16,500 metric tons of chilled and frozen beef. Because the agreement took effect in May, however, the quota was adjusted proportionally to cover eight months, resulting in a total of 11,000 tons.

Beef shipped within the quota is subject to a 7.5% tariff. The quota rises to 33,000 metric tons in 2027, 49,500 tons in 2028, 66,000 tons in 2029, 82,500 tons in 2030 and the full 99,000 tons in 2031.

According to foreign trade data from Datamar, Brazilian beef exports to the 27 European Union member states reached 5,315 TEUs, equivalent to approximately 58,672 metric tons, in the first seven months of the year. The chart below provides a monthly breakdown:

Beef Exports | European Union | Jan-Jul | 2022-2026 | TEUs

Source: DataLiner (click here to request a demo)

Paraguay pushes for equal split

How the quota will be divided among Brazil, Argentina, Uruguay and Paraguay has yet to be settled.

According to Perosa, Argentine and Uruguayan industry representatives have been more receptive to Brazil’s proposals, while Paraguay has taken a more resistant position.

Paraguay is seeking an equal division of the volumes among the four countries, which would give each a 25% share.

Despite the disagreement, Perosa said he believes a solution could be reached relatively quickly.

“The [Brazilian] government is negotiating and so is the private sector. We have been working with the government to align expectations,” he said. “I believe 30 to 40 days is a reasonable timeframe to reach a consensus.”

Source: Globo Rural

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